Monthly Review of the Caucasus Economy - February 2026
Georgia's inflation trajectory took a positive turn in 2025, marked by a significant increase compared to the previous year. In January 2026, the annual growth of the consumer prices index accounted to 4.8%. Despite a notable 10.6% increase in food and non-alcoholic beverages prices, several sectors experienced price drops, with telecommunication prices decreasing by 4.6%. These developments prompted the Central Bank to leave the refinance rate at 8%.
In the past, Armenia's position in the region was different regarding price level changes. In January 2026, the annual growth in consumer prices was 3.8%. The highest increase, 9%, was recorded in the alcoholic beverages prices, while prices decreased by 0.1% in telecommunication sector. The Central Bank of Armenia also made a significant move by starting to ease its monetary policy last year. The most recent decision saw the refinancing rate left unchanged at 6.5%.
Inflation has decelerated in Azerbaijan. In January 2026, the consumer prices index growth amounted to 5.7%. In December, inflation was at 5.2%. In previous periods, Azerbaijan was also distinguished by relatively high inflation in the region. Nevertheless, the Central Bank of Azerbaijan refrained from tightening the policy. The decision made in February decreased the policy rate at 6.5%.
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